Location: Hartford-West Hartford-East Hartford, CT | Metro: Hartford-West Hartford-East Hartford, CT MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,340 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
The Section 8 analysis for ZIP code 06102, located in an area with an unspecified percentage of renters, a median home value of N/A, and a median income of N/A, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR in ZIP 06102 is set at $1650. However, the market rent data is currently unavailable, which complicates the direct comparison needed for a thorough analysis.
In the absence of specific market rent figures, it's important to consider the implications of the FMR alone. The FMR is designed to ensure that rental housing is affordable for low-income families participating in the Housing Choice Voucher program, also known as Section 8. In ZIP 06102, landlords who accept voucher tenants can expect a steady stream of income at the rate of $1650 per month, which is guaranteed by the government. This makes the area a potentially attractive investment for yield-focused landlords and small-portfolio investors, as they can secure long-term tenancy without the volatility associated with market rents.
However, accepting voucher tenants means operating below the typical market rates, which could be significantly higher than $1650 based on historical trends in similar areas. The cost of housing voucher tenants below open-market rates includes potential revenue loss and the need for landlords to maintain properties to meet certain standards without the benefit of higher rent payments. Additionally, there might be administrative burdens and the requirement to undergo periodic inspections and certifications to continue receiving the vouchers.
To fully assess the impact of this gap, it would be necessary to have current market rent data for ZIP 06102. Until then, the decision to participate in the Section 8 program should be based on the stability and predictability of the income stream versus the potential for higher yields in a robust rental market. Landlords and investors must weigh these factors carefully, considering the local economic conditions and their own financial goals.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.